Request for Proposals (RFP) Food Service Concession: Cannon Mountain & Flume Gorge
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State of New Hampshire Department of Natural and Cultural Resources DIVISION of PARKS and RECREATION 172 Pembroke Rd, 03301 Phone: 603/271-3556 Fax: 603/271-3553 Request for Proposals (RFP) Food Service Concession: Cannon Mountain & Flume Gorge RFP issue date: July 10, 2017 Mandatory onsite meeting: July 26, 2017, 10 a.m. at Franconia Notch State Park HQ Proposal due date: August 16, 2017, 3:00 p.m. Anticipated vendor selection: August 30, 2017; Start of contract negotiations Anticipated start date: Contract start date November 1, 2017. In service date November 24, 2017. This is a five (5) year contract, pending NH Governor & Executive Council approval, with the State’s option to extend contract by an additional three (3) years, also pending NH Governor and Executive Council approval on extension INVITATION & INTRODUCTION The State of New Hampshire, Department of Natural and Cultural Resources, Division of Parks and Recreation (the “State” and “Division”) is seeking written proposals from firms to operate the food service concession at Cannon Mountain Aerial Tramway & Ski Area, to include the Tramway Summit Station, Peabody Base Lodge Food Court, Cannonball Pub at Peabody, Notchview Lodge, and the Mittersill Warming Hut (collectively, “Cannon Mountain”), and the Flume Gorge / Gilman Visitors’ Center (the “Flume Gorge”). The selected concessionaire will enter into a contract negotiation with the Division to secure final details. The contract will be drafted and approved in finality by the Division, which reserves its right to make a final decision after negotiations. OBJECTIVE & SCOPE Food service at Cannon Mountain and the Flume Gorge should enhance the experience of the guests and provide a significant source of revenue to the Division. Additionally, food service should cater to skiers/snowboarders at Cannon in the winter and the food service company should generate additional revenues by actively promoting "function" business. The Division is looking for proposals from companies that are innovative, fiscally responsible, and eager to create a mutually beneficial partnership. GENERAL DESCRIPTION OF SERVICES The contracted concessionaire will operate the food service concession at Cannon Mountain Aerial Tramway & Ski Area, to include the Tramway Summit Station, Peabody Base Lodge Food Court (a deli, cafeteria and lounge with food service), Cannonball Pub at Peabody (a full liquor license pub), Notchview Lodge, and the Mittersill Warming Hut (collectively, “Cannon Mountain”), and the Flume Gorge / Gilman Visitors’ Center (the “Flume Gorge”). Food service also includes operating two facilities with liquor licenses: Peabody Lodge serving beer and wine and Cannonball Pub at Peabody, operating under a full liquor license. In addition, the food service concessionaire is expected to promote and produce special event functions throughout the year. Food Service Concession RFP for Cannon Mountain & Flume Gorge Page 1 of 9 The contract may or may not include the operation of vending machines and arcade games (placement subject to approval by the Division). The concessionaire will be responsible for trash removal. The Division will operate the food service at the Tram Valley Station and at the Old Man of the Mountain Museum and Historic Site, and may elect to operate small, new venues if or when opportunities arise. Use of facilities by outside parties: The Division reserves its right to ask the concessionaire to rent out the Peabody Base Lodge (or other concessioned venues) to outside parties that may elect to bring in their own food service. This shall be offered on an "as available" basis, based upon the concessionaire’s current event function schedule, and the concessionaire shall be expected to make the lodge itself and food preparation facilities available at a reasonable fee, to qualified firms. A security deposit may be charged to said outside users of the facilities. The liquor license will remain the property of the concessionaire and, if alcohol is to be served at events booked by outside parties, the concessionaire shall be the only company that may serve alcohol at such functions for which a fee is charged to the public. Official Soft Drink Provider: The contracted concessionaire will be expected to work with a (contracted or non-contracted) "Official Soft Drink Provider" as determined by Cannon Mountain Aerial Tramway & Ski Area and Franconia Notch State Park management. Boutique Food Items, Packaged Goods & Other Retail Items: The Division reserves for itself its right to sell boutique food items, packaged goods, and all other retail items at its venues. The contracted concessionaire is prohibited from offering or selling any products other than those food and beverage items under the food service contract, unless prior approval is granted from the Division. BACKGROUND Cannon Mountain was one of the first ski areas developed in the State of New Hampshire, and among the first in the United States. It is the site of the first aerial tramway built in North America and the only such tramway in New Hampshire. Annual visits are approximately 140,000 to 150,000 skiers/riders per winter season and approximately 100,000 during the summer season. The aerial tramway is one of NH's most visited summer attractions, and when combined with the nearby Flume Gorge, Lafayette Campground, Franconia Notch Recreational Path, Echo Lake Beach, Cannon Mountain RV Park, and the Old Man of the Mountain Historic Site and Museum, it makes Franconia Notch State Park the most oft-visited destination in Northern NH. Summer visitation at Franconia Notch State Park is approximately 500,000. Visitation at the Flume Gorge is approximately 300,000 total visitors, with approx. 125,000 paid visits. Concessioner Food & Beverage (F&B) Venues: Cannon Mountain & Flume Gorge: • “Mountain Station” café/food court and small bar at 4,080’ elevation (winter / summer) Food Service Concession RFP for Cannon Mountain & Flume Gorge Page 2 of 9 • Notchview Café at base of Cannon/Peabody area (primarily winter) • Peabody Lodge food court at base of Cannon/Peabody area (winter, plus summer functions) • Cannonball Pub at base of Cannon/Peabody area (winter, plus summer functions) • Mittersill area / small F&B operation (as it comes online during winter 2017/18 or 2018/19) • Flume Gorge food court (summer, plus winter opportunities as needed) • Agreed upon vending / video / arcade opportunities for the concessionaire • Other agreed upon and/or co-constructed venues, as needed, or if brought on-line Gross Sales for food services at Cannon Mountain and the Flume Gorge, including the Tramway Station, for the last five (5) fiscal years: Cannon Winter Flume Gorge Total (rounded) FY2012 685,794. 440,588. 1,126,382. FY2013 1,088,002. 463,869. 1,551,870. FY2014 1,131,788. 530,384. 1,662,172. FY2015 1,278,826. 549,839. 1,828,665. FY2016 794,426. 607,325. 1,401,750. FY2017 1,254,017. Taxes: Property taxes to the Town of Franconia and the Town of Lincoln shall be the responsibility of the food service concessionaire. Other general requirements: The contracted concessionaire must provide, and have and hold at its expense, at all times during the contract: 1) Proof of general liability insurance, including liquor liability insurance that covers its operations and services. 2) Proof of Workers Compensation insurance the covers all its employees. 3) All local and State licensing and permitting required for its operations and services. REQUIRED BID CONTENT & SUGGESTED FORMAT I. Operating Plan A. MENU 1. Present your standard menu for food & beverage; broken out by location, including: a. portion size b. presentation (plate, platter, etc.) c. price d. location e. food grade and source 2. Present examples of unique items of interest to winter and summer guests, including: a. portion size b. presentation Food Service Concession RFP for Cannon Mountain & Flume Gorge Page 3 of 9 c. price d. location e. dates/occasions that the item(s) is (are) offered 3. Present one or more examples of special event menus. B. INFRASTRUCTURE 1. Present a recommended design and furnishing for all food service areas, including areas that are open to public, the visible food service area, and food preparation areas. 2. Explain what your company will do to achieve the above, Section B.1, by using the company’s financial and other resources. 3. Explain what your company would currently propose to achieve the above, Section B.1, by sharing the cost of improvements of up to $500,000 with the Division, as provided in Section II.F., below. C. MANAGEMENT 1. Provide a listing of the staffing (including salary ranges) that you will commit to the Cannon Mountain/Flume Gorge operation. 2. Provide an organization chart of the Cannon Mountain/Flume Gorge concession operations and how it links with your business as a whole. 3. Describe how your company is uniquely qualified to operate the Cannon Mountain/Flume Gorge food service. 4. Explain how your company will integrate food service with the rest of Cannon Mountain and Flume Gorge operations that are managed by the Division. 5. Explain your company's dress code and hiring (screening) process as it relates to this operation. 6. Provide your proposed operating schedule, by season and by location. 7. Explain your company's training program as it relates to safety and service, including food safety. 8. Explain how your company would minimize waste flow through recycling and other practices at the Cannon Mountain/Flume Gorge operation. 9. Explain how your company would reduce energy consumption at the Cannon Mountain/Flume Gorge operation. D. MARKETING/BUSINESS PLAN 1. Provide a plan to maximize revenues obtained from existing visitors to Cannon Mountain and the Flume Gorge. 2. Provide a plan to increase the number of visitors to Cannon Mountain and the Flume Gorge. Il. Financial Commitment A. Outline the start-up costs associated with the Cannon Mountain/Flume Gorge food service.